Farming
Farming inheritance tax changes spark calls for delay amid Welsh concerns
Committee warns of “confusion” as Government urged to review impact on Wales
PLANS to overhaul inheritance tax rules for agricultural estates have prompted a warning from MPs that Welsh family farms could face significant uncertainty unless ministers pause the reforms and assess their impact properly.
The cross-party Welsh Affairs Committee says the measures, due to take effect in April 2026, risk hitting small and medium-sized family farms far harder than the UK Government has suggested. Members argue that the changes have been developed without considering the distinct structure of Welsh farming, where many holdings are family-run, multi-generational and reliant on diversified income streams.
Under the proposals announced in last year’s Labour Budget, inherited agricultural assets valued above £1m would be taxed at 20%. While Treasury officials insist that only the largest estates will be affected, farming unions and rural accountants have produced far higher estimates. Some advisers say the reforms could touch the majority of Welsh farms, particularly where investment in tourism, renewables or on-site businesses has increased overall estate values.
The committee’s report highlights that no Welsh-specific data was published when the policy was announced, leaving what it describes as “a vacuum” filled by wildly different projections. MPs say this lack of clarity has fuelled anxiety across the sector, especially among families preparing for succession in the coming years.
Farmers who have expanded into caravan parks, holiday accommodation or wedding venues warn that diversification — encouraged for decades as a way of shoring up rural income — now risks pushing them over the proposed allowance. Several have told the committee that younger family members hoping to take over holdings are now unsure how to plan, with some reconsidering investment or delaying major decisions until the tax position is clearer.
The committee has urged the UK Government to halt the reforms until a full, Wales-specific impact assessment can be produced, scrutinised and debated. Members argue that any future policy must recognise that Welsh farms are typically smaller, more marginal and more culturally significant than the UK average, often forming the backbone of Welsh-speaking communities.
They also recommend that the Wales Office should take a leading role in assessing how UK-wide tax policies affect devolved nations, to avoid repeating what they describe as a “complacent” approach in this case.
Opposition parties in Wales have echoed the committee’s call for a pause, arguing that the reforms could destabilise rural communities and introducing that level of financial pressure without detailed analysis risks unintended harm. They say there are alternative ways to tighten tax rules for large estates or corporate landowners without imposing heavy costs on working family farms.
The Welsh Government said it welcomed the committee’s work and would consider its findings. The Treasury maintains that it is supporting British agriculture through investment allowances for machinery, funding for sustainable food production and measures designed to reduce EU export costs. Ministers say the reforms will ensure reliefs worth hundreds of millions of pounds are more fairly distributed and contribute to public services.
The next UK Budget is due within a fortnight, and farming organisations will be watching closely for any sign that ministers intend to slow down or revise the proposed changes.
Business
Cwm Deri Vineyard Martletwy holiday lets plans deferred
CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.
In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.
It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.
An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.
Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.
He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.
He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.
He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”
On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.
He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”
While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.
A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.
Farming
Farmers Union of Wales Warns: Labour’s 5G Expansion Risks Rural Blackspots
FUW Joins Landowners in Urgent Call to Pause Controversial Telecoms Reforms
THE FUW (Farmers’ Union of Wales) has warned that rural communities face worsening mobile blackspots and farmers risk losing essential income if the Labour Government expands a telecoms policy blamed for stalling Britain’s 5G rollout.
In a letter to Digital Economy Minister Liz Lloyd, the FUW aligns with landowners, investors, and property experts demanding a halt to Part 2 of the Product Security and Telecommunications Infrastructure (PSTI) Act 2022. Extending the 2017 Electronic Communications Code (ECC) would “entrench failure,” the group argues, sparking more stalled renewals, site losses, and legal battles just as Wales needs swifter rural connectivity.
The 2017 reforms empowered operators to cut mast rents—often by 90%—from hosts like farmers, councils, and NHS trusts. Far from boosting rollout, they’ve ignited over 1,000 tribunal cases since 2017, versus 33 in the prior three decades. Rural goodwill has eroded, with hosts now eyeing exits.
“Every lost mast isolates households, schools, and businesses,” the FUW states. “No public subsidy can fix this systemic damage.”
A survey of 559 hosts (via NFU, CLA, BPF) shows:
- 35% considering full withdrawal.
- 70% of expired lease holders facing operator legal threats.
Landowner Ted Hobbs in New Tredegar shares the pain: “My 1995 Vodafone lease was £3,500 yearly, renewed in 2010 at the same rate. It expired May 2025—now they demand a slash, backed by the Code. This is confiscation, not partnership.”
Labour’s push forward—despite earlier opposition and a critical consultation—ignores these red flags.
FUW President Ian Rickman adds: “Farmers hosted masts in good faith for rural connectivity. Punishing them with rent cuts sabotages Wales. Halt this now, restore trust, and incentivise real progress.”
The coalition urges ministers to reopen dialogue before deepening rural divides. Wales can’t afford more policy missteps.
Business
Large new development at one of Pembrokeshire’s biggest dairy farms approved
PLANS for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.
In an application recommended for approval at the December 2 meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.
A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.
“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.
“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff. Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”

It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).
“Following the completion of the calf and weaned calf accommodation buildings, the farm will be rearing all of the cattle under seven months at Langdon Mill Farm, before being transported off site to be reared at three farms in the local area. At 22-months the in-calf heifers are brought back to the maternity building to calve and then are introduced into the milking herd.”
It said the proposed building would be used by heifers between the ages of 7-22 months, the siting “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.
Approval was moved by Cllr Brian Hall, seconded by Cllr Danny Young, with Cllr John T Davies also stating his support.
“It’s common sense; the fact we approved a calf-rearing shed, it follows on you need a heifer rearing shed,” he said.
Cllr Davies later said the scheme would also support biodiversity, and, with a decline in milk prices, supporting the large-scale farm was about “safety in numbers”.
Chair Cllr Mark Carter said it was “a pleasure to be supporting the farming industry”.
Members unanimously supported the recommendation of approval.
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